ACCELERATED DEATH BENEFIT RIDER

Life Plus

ACCELERATED DEATH BENEFIT RIDER? F O R U S E I N C A L I F O R N I A O N LY

CLIENT GUIDE

FOR USE IN CALIFORNIA ONLY

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A Columbus Life universal life policy provides financial protection for your loved ones in the event of your death.

Did you know that you also have valuable protection that can be used while you are still living?

CL 5.2019-CA (01/20)

Life Plus

ACCELERATED DEATH BENEFIT RIDER?

Benefit From Your Life Insurance During Your Lifetime

Often known as a living benefit, an accelerated Death Benefit rider such as LifePlus provides the flexibility of being able to access a portion of the Death Benefit of a life insurance policy before the insured dies. Early access to your policy benefits can help improve your quality of life if you are terminally, chronically or critically ill. You may use the funds for any purpose--to cover medical care costs, or even to take the trip of a lifetime.1

Accessing the Benefits of LifePlus

LifePlus Accelerated Death Benefit Rider will be added to your policy by Columbus Life, where approved.3 The rider allows an advance4 against the Death Benefit if you meet one of the following three qualifying events:5

? Critical Illness. Critical Illness is defined as an individual who has a medical condition that is diagnosed while the rider is in force that would, in the absence of treatment, result in death within six months.

Living Benefits

? Chronic Illness. Chronic Illness is defined as an

Columbus Life's LifePlus living benefit is provided at

individual who is: (1) unable to perform (without

no additional premium2 and is called an Accelerated

substantial assistance from another individual) at

Death Benefit Rider in your policy. This rider gives

least two of six Activities of Daily Living (ADLs),

you the power to access a portion of your life

for a period of at least 90 days due to a loss of

insurance policy's Death Benefit while you are living,

functional capacity and a Licensed Health Care

provided you meet certain criteria as specified by

Practitioner has determined the loss of ability to

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the rider and the laws in your state.

perform the ADLs is expected to be permanent

or (2) requires substantial supervision to protect

In other words, you can receive an advance against

himself or herself from threats to health and safety

your policy's Death Benefit and have the freedom to

due to severe cognitive impairments. The six ADLs

spend it however you choose. There are no restrictions

are routine daily activities generally considered

regarding how the advance is used. No bills or receipts

necessary for a self-sustaining person to remain

are required to receive the benefits--and in many

independent: eating, bathing, continence, dressing,

instances benefits are tax-free.

toileting and transferring.

? Terminal Illness. Terminal Illness is expected to result in death in one year.

1 We recommend that you contact your tax advisor when making decisions about electing to receive benefits from any accelerated benefit product, as the owner may incur a tax obligation.

2 This rider is added at no additional premium; however, we may charge a fee of up to $250 (state variations may apply) for an advance payment. An advance is treated as a lien secured by the Death Benefit of the policy. The advance will accrue interest each year. The rate of interest will depend on the cash value of your policy and may vary as required by the laws of your state. The lien may be increased if necessary to keep this policy in effect.

3 Certain medical histories may prevent qualification for the Life Plus Accelerated Death Benefit Rider. Insureds who do not qualify for the Life Plus rider will receive either the Accelerated Death Benefit Plus Rider or the Accelerated Death Benefit Rider.

4 In some states, benefits from the Life Plus Accelerated Death Benefit Rider are not available during the contestable period of the policy, as defined by the state of issue. In most states, benefits are not available for Chronic Illness until after the second policy anniversary, as defined by the state of issue. Contact your financial professional for information about your state.

5 Product provisions, availability, definitions and benefits may vary by state.

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Selecting a Payout Option

All three qualifying events allow you to receive your advance in the form of a lump-sum payment.7 However, if a Chronic Illness advance is taken, you have two payout options.

At the time of claim, you may choose to take your Chronic Illness advance as a lump-sum payment or as periodic payments through the Payout Benefit Option.8

Selecting the Payout Benefit Option allows you to choose the length of time, from 3?10 years, for which you will receive your advance in periodic payments. Interest will accrue on any outstanding advances.

The qualifying terms and conditions for accessing accelerated benefits vary by state. Be sure to check with your financial professional to determine the requirements in California.

7 The lump-sum advance may be taken as a single payment or as frequently as monthly. For Terminal Illness and Critical Illness, all advances must be taken within 12 months of the first advance. For Chronic Illness, a one-time lump-sum advance or periodic payments can be taken.

8 The Payout Benefit Option is only available on Chronic Illness advances, as defined by the state of issue.

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Life Plus

ACCELERATED DEATH BENEFIT RIDER?

How Your Benefit is Calculated

Lump-Sum Payment Minimum Advance: $500 Maximum Advance Formulas:

Critical Illness:

+ Lesser of A $25,000 or B 10% of Net Amount at Risk*

Cash Surrender Value

Chronic Illness:

+ Lesser of A $250,000 or B 40% of Net Amount at Risk*

Terminal Illness:

+ Lesser of A $250,000 or B 60% of Net Amount at Risk*

Maximum Advance Amount**

If more than one qualifying event occurs simultaneously, we will use the qualifying event with the highest maximum advance amount to determine the available lump-sum payment unless you request otherwise.

*Net Amount at Risk refers to approximately the existing Death Benefit plus indebtedness less accrued account value. **Maximum Advance Amount may be reduced by interest.

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Payout Benefit Option -- For Chronic Illness Only Minimum Advance: $500 Maximum Advance and Periodic Payments Formula:

Lesser of A $1,000,000 or B 50% of Death Benefit

? Maximum

Advance Amount

Payout Length [3?10 Years]

= Annual Benefit***

***The annualized amount is not to exceed the lesser of the Annualized IRS Per Diem Limit or $240,000 in a given year.

Payout Durations

Terminal Illness or Critical Illness

Lump-Sum Payment7

Chronic Illness

Lump-Sum Payment7

Payout Benefit Option8

MINIMUM 3 YEARSMAXIMUM 10 YEARS

Years of Advance 0 1 2 3 4 5 6 7 8 9 10

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